CHARLES V MALICO Fined and Suspended by FINRA

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former NETWORK 1 FINANCIAL SECURITIES of Huntington Station, New York, broker with violating Regulation Best Interest (Reg BI) for excessive trades in a client’s account.

CHARLES VINCENT MALICO (CHARLIE MALICO, CHARLES V MALICO) was suspended for six months and ordered to pay a $5,000 fine by FINRA.

Without admitting or denying FINRA’s findings, CHARLES V MALICO consented to the sanctions and to the entry of findings that he allegedly violated the Best Interest Obligation under Rule 15l-1 of the Securities Exchange Act of 1934 (Regulation Best Interest or Reg BI) by recommending a series of transactions in a retail client's account that was excessive in light of the client's investment profile.

FINRA’s findings stated that the trades that CHARLES V MALICO allegedly recommended in the client's account resulted in an annualized cost-to-equity ratio exceeding 158 percent. This means that the client's account would have had to grow by more than 158 percent annually just to break even. Malico's recommendations caused the client to pay more than $54,000 in commissions and other trading costs, and made it nearly impossible for the client to realize a profit. The client lost more than $17,500 as a result of Malico's recommendations.

FINRA also ordered Network 1 to pay a $200,000 fine and $533,587 in restitution plus interest for the firm and its Chief Compliance Officer’s failure to establish, maintain and enforce written supervisory procedures reasonably designed to achieve compliance with Reg BI, according to a recent article in ThinkAdvisor.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, CHARLES V MALICO has been in the securities industry for 34 years and has been registered with 21 firms.  Malico is currently not registered.  He has 12 disclosures on his FINRA CRD report.  Of those 12 disclosures 7 are “Customer Disputes.”  The significance of Malico’s FINRA Customer Complaints is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. Malico’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

If you or a loved one have experienced investment losses due to the actions or recommendations of CHARLES V MALICO formerly of NETWORK 1 FINANCIAL SECURITIES of Huntington Station, New York, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery.